San Antonio Council Briefing on Downtown Sports & Entertainment District, October 28, 2026

On October 28, 2026, the San Antonio City Council received a detailed briefing on the proposed downtown sports and entertainment district. The session covered the convention center expansion feasibility study, financial operating models, a cost of service analysis, a downtown mobility and accessibility study, and updates on community engagement and the Alamo Dome. The discussions emphasized phasing the massive project and managing financial risks contingent on economic conditions and state funding.

Discussion Items

• Convention Center Expansion (Michael Apple / Populos): Presenters highlighted historic occupancy rates, noting the Henry B. González Convention Center reached 75% occupancy in both 2018 and 2025, which they indicated triggers the need for expansion. The current facility has 514,000 sq ft of exhibition space, 94,000 sq ft for events, and 120,000 sq ft for meetings. The proposed expansion targets 650,000 sq ft of exhibition, 144,000 sq ft for events, and 143,000 sq ft for meetings. The total project cost is estimated at $850 million. A phased approach was proposed: Phase 1 at $700 million (exhibition and event hall expansion) and Phase 2 at $150 million (additional meeting space and accessibility improvements). The design aims to integrate with the Riverwalk and Hemisfair. Councilmember Core noted the difficulty navigating the current layout and stressed the need for a design that connects better with the arena and Hemisfair.
• Financial & Operating Model (Ben / Troy Ellis): Staff presented a constrained fiscal landscape. The financing strategy relies on Arena PFC, surplus from the 2% city and 7% general Hotel Occupancy Tax (HOT), and bond proceeds. The PFC base model projects $1.9 billion for the district, down from a prior state estimate of $2.5 billion. The Alamo Dome requires $125 million in capital over 10 years, with a major renovation decision deferred to 2035. Staff are exploring additional revenue streams from rights, sponsorships, parking, district improvements, concessions, and TNC fees. Councilmember Galván expressed concern about relying on optimistic PFC and occupancy rate projections and asked what happens if targets are missed. Staff acknowledged the need to provide explicit contingency scenarios.
• Cost of Service Study (Troy Ellis): The study models the net fiscal impact on the general fund once the arena, convention center expansion, and mixed-use development are fully operational (full buildout assumed by ~2042). The base model estimates $1.2 million in annual net new tax revenue to the general fund, offsetting the service costs for police, traffic, and parks. The model accounts for concurrent events and is designed to be dynamic. Councilmember Viagran asked for detailed premises documentation so the community can understand the model's assumptions. Councilmember Castillo questioned how service costs would be allocated to events.
• Mobility & Accessibility Study (Shannon Miller): A key preliminary finding stated there is no immediate need for a new large parking structure. The study focuses on improving wayfinding, implementing dynamic pricing, integrating parking and transit technology, and shifting behavior away from single-occupancy vehicles toward transit, micromobility, and ride-sharing. The implementation strategy is due in early 2027. Councilmember Viagran raised concerns about east side connectivity and traffic management, emphasizing integration with existing transit (VIA) and neighborhoods. Councilmember Core stressed the need for better pedestrian and bike connectivity along the Salado Creek.
• Reconnecting Communities & Engagement (Shannon Miller): Staff are conducting an I-37 connectivity study to link the east side with downtown, with a final plan expected in Spring 2027. A 33-member community consultant committee is being formed. A new public web dashboard tracking project budgets, funding sources, and timelines will launch in early 2027. Councilmember Viagran stressed the importance of connecting cultural districts like Market Square to the new district.
• Exploratory RFPs and Future Options: Staff proposed issuing exploratory RFPs in 2027 for the Good Courthouse and Nova Street sites. For the Alamo Dome, which has an annual operating deficit of $3 to $5 million, the city will explore operational partnerships with the private sector to close the deficit. Councilmember Castillo requested that community benefits agreements, worker retention, and affordable housing be central considerations in any private partnership proposals.

Key Outcomes

• Staff received direction to proceed with exploratory RFPs for the Alamo Dome, Good Courthouse, and Nova Street developments, with results expected back in fall 2027.
• The convention center expansion RFP is planned for Spring 2027, with design selection and bond financing targeted for late 2028 (bond issuance is expected to occur after the arena financing in September 2028).
• Council requested detailed documentation of the financial model premises (PFC, Tiers, occupancy rates, hotel room growth assumptions) for transparency. Staff committed to providing a clear summary of how the models work and what the key assumptions are.
• The mobility implementation strategy will be finalized in early 2027, explicitly excluding new large parking structures in the near term.
• The East Side community reconnection plan will be finalized in Spring 2027.
• Staff committed to aligning the construction timelines of the new arena and the convention center expansion to seek logistical and economic efficiencies.
• Councilmembers Galván, Viagran, and M. González expressed the need for robust risk mitigation strategies if PFC/Tier revenues underperform or if costs increase, with staff agreeing to stress-test the models and provide clear contingency scenarios.